City Council
Report
City Council Meeting: February 11, 2025
Agenda Item: 4.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Approval of Second Modification to Agreement with Alexander's Contract Services, Inc. for Water Meter Reading Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that the contract modification is not a project subject to the California Environmental Quality Act (CEQA); and
2. Authorize the City Manager to negotiate and execute a second modification to Agreement #12215 (CCS) in an amount of $170,000 with Alexander’s Contract Services, Inc. and to extend the term an additional 11 months for meter reading services for the Public Works Department. This will result in a five-year amended agreement with a new total amount not to exceed $780,000, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Water Resources Division collects revenue from its water and wastewater customers based on their actual water and wastewater usage, along with a fixed capacity fee. The variable portion, or actual water usage and wastewater discharge, of this charge is measured by each customer’s water meter located throughout the city, which are read manually once every two months. Alexander’s Contract Service, Inc. augments the Water Resources Division’s meter reading program, allowing staff to address residential leaks, customer service inquiries, meter replacements, and perform other proactive maintenance for the City’s meter infrastructure. Staff is requesting a second modification to agreement #12215 (CCS) to increase the contract budget to $780,000 from $610,000 and extend the term by eleven months to December 31, 2025. The contract duration extension aligns with the 2 of 4
deployment of Smart Water Meters or Advanced Metering Infrastructure (AMI). The Smart Water Meters project is expected to be completed around February 2025, and this contract extension would continue meter reading services in the interim and during the transition period after the project is complete to confirm water usage reported by the Smart Water Meters. The contract modification is based on actual budget expended to compensate the contractor providing such services over the past two years. Funding for this service is included in the Water and Wastewater Funds’ operating budgets.
Discussion
Prior to the Smart Water Meters project, the City’s water meters were read manually every two months to bill each customer for water usage and wastewater discharge. The Meter Reading Services Request for Proposals (RFP) was published on October 30, 2019, on the City’s PlanetBids website. A total of 534 vendors were notified, 14 vendors downloaded the RFP, and 1 submission was received. Staff awarded the contract to the sole bidder, Alexander’s Contract Services, Inc.
By contracting with Alexander’s to provide meter reading services, the Water Resources Division’s Water Resources Technicians are able to focus on customer service inquiries, residential water leaks, meter replacements, and assisting with the deployment of the AMI meters citywide. On average, the five Water Resources Technicians respond to over 200 weekly work orders, including trouble codes like high water consumption and possible water leaks, which are critical under ongoing drought conditions. Having meter reading services augmented by Alexander’s, allows for timely responses to customer requests and inquiries.
The second contract modification to increase the contract budget by $170,000 (from $610,000 to $780,000) and to extend the contract duration by eleven months is necessary to support the Smart Water Meter Project. The additional amount is based on the average monthly expenditure and the cost per meter read and re-read will remain the same as the negotiated price in the original contract. The contract duration extension aligns with the deployment of Smart Water Meters and is expected to be completed around February 2025. This contract modification would continue meter 3 of 4
reading services in the interim and during the transition period after the project is complete to confirm the accuracy of water usage reported by the Smart Water Meters.
Environmental Review
The contract modification is not a “project” subject to CEQA. The meter reading services does not involve any construction activity, and the services provided augments activity that was previously performed by City staff. Pursuant to CEQA Section 21065, the contract modification does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the contract modification is not subject to CEQA.
Past Council Actions
Meeting Date Description
10/12/2021 (Attachment D) Approval of First Contract Modification to CT #4652 with Alexander’s Contract Services
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water and Wastewater Funds to increase the amount of contract #12215 (CCS) with Alexander’s Contract Services, Inc. for water and wastewater meter reading services.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY 2024-25
Request Amount
Future
Years
Amount Department Account
#
Total
Revised
Contract
Amount
12215
(CCS)
$305,000 $50,000 $35,000 50500001.550010 $390,000
$305,000 $50,000 $35,000 51500001.550010 $390,000
Total $610,000 $100,000 $70,000 $780,000
Future year funding is contingent on Council budget approval. 4 of 4
Prepared By: Thomas Poon, Engineering Support Services Administrator Approved Forwarded to Council
Attachments:
A. FY 24-25 Oaks Initative - Alexander's Contracting
B. FY 24-25 Levine Act Disclosure Form (Alexander)
C. CT 4652 - Alexander's Contracting - Meter Reading (Original) D. CT 12215 (fka 4652) - Alexander's Contracting - Meter Reading (Mod 1) E. Attachment A - Staff Report (October 12, 2021)